Wipro Q1 revenue beats estimates, net profit dips to $321M

For the June quarter, Wipro's IT services revenue was at $1.97 billion, up 2.1% from the year-ago period and 0.3% on a sequential basisPTI | Updated: July 21, 2017, 00:26 IST

India's third largest IT firm Wipro today posted a 1.2% rise in its consolidated net profit at Rs 2,076.7 crore ($321 million) for the April-June quarter.

The Bengaluru-based firm had registered a net profit of Rs 2,052 crore in the year-ago period. Its total income grew marginally to Rs 14,281.4 crore during the first quarter.

Wipro, which gets bulk of its revenues from IT services, said it expects revenues from that business to be in the range of $1.96- $2 billion in the September quarter.

For the June quarter, IT services revenue was at $1.97 billion, up 2.1% from the year-ago period and 0.3% on a sequential basis. Revenue from IT products during the quarter was at Rs 630 crore ($98 million), an increase of 7% year-on-year.

Wipro CFO Jatin Dalal said the impact on operating margins on account of rupee appreciation and salary increases was partially offset by strong business efficiencies. "We continue to sustain robust cash generation," he added.

During the June quarter, Wipro added 1,309 (gross) employees, taking its total headcount to 1,66,790 people.

The company's board also announced a share buyback proposal of Rs 11,000 crore entailing 34.3 crore equity shares at Rs 320 apiece. On the buyback offer, Dalal said the announcement to buyback equity shares is part of Wipro's philosophy to "deliver efficient returns to shareholders".

Wipro, during the quarter ended June 30, 2017, allotted bonus equity shares - one bonus share for every one share held - to its shareholders.